Executive Pay Issues - Case Study Example

The roles involved range from setting the goals to planning, overseeing to implementation (He, Mahoney, and Wang, 302). The size of the company should compensate the managers for all their contributions to the company. Among the inducements as He, Mahoney and Wang indicate include reasonable compensation packages to the managers and ownership of the management process (302). This will automatically motivate the managers to perform.

To control the relationship so that it suits the interest of the shareholders, it is recommended that the managers and the stakeholders build their rapport (He, Mahoney, and Wang, 302-6). This will ease the compensation process considering the kind of effort the managers put into the organisation. The managers will, in turn, make propositions that will favour the shareholders by meeting the set goals of the organization. The acquired profits will be distributed reasonably among the involved stakeholders.